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I am wanting to start my own design business. I was just wondering what legal information I need to know to do this. Are there any licenses I need to obtain, or is there anything I need to register with. How much do I have to make before I have to give some of it to the government in the U.S.? Do I have to worry about sales tax?

You should ask RAGE, another member on this forum because he is starting his own design/development business too.

I don't myself know much about the licenses but I do know that you have to be at least 18 to get a licensed business and a credit card.

In some states, there is no tax on services (i.e. window washing, or Web design) but in some states there is. You'll want to check with your local goverment or someone who knows a bunch about your state before you think about tax.

Yes, you do need to get a business license if you want to be incorporated (inc.) or a limited liability company (LLC). However you don't if you just want to be a single person (freelancer, to be more specific) without a license. From what I know, the license is a kind of verification that you are in fact Chris Roane of CR Web Design inc. and not someone who wants to make some quick bucks on a scam.

I think once you make $600 then you have to pay taxes; but don't take my word for it.

This is all based on the assumption that you're in the US.

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Who the heck is Gen. Failure and why does he want to read my hard drive?
Soon to come: Aspology.com

Can all the people in the business be considered freelancers if there is more than one person working in the business?

If we can consider ourselves freelancers, do we give a % to the government on the amount each of us makes over $600, or on the amount the business makes all together? I am asking this because all the people in the business will only make what their client will pay them and a % of what they make will go back into the business.

By using freelancers you would go with a 1049 form. We do this at my business when we use freelancers. As an employeer you don not have to pay half of the Social Security, but as a 1049 freelancers (sub-contractor) you have to pay both the normal employee % of S.S. and the employeers % of S.S., because you are basically self employeed. So it depends on what side of the line your on. Great for employeer and bad for employee.

I would be careful putting full time employees as suc-contractors. It may not be entirley illegal, but morally it stinks. It really puts your employees at a major disavantage.

You do not have to pay into Social Security if you have an alternate retirement plan like an IRA or a 401K plan. Only if you don't pay don't expect to be able to draw either because your Social Security is determined by the number of quarters you paid into the system.